A. Lee Graham
Reporter
Tandy Leather Factory Inc. of Fort Worth has reported net income of $1.8 million in the second quarter, or 8 percent more than $1.6 million in the same period last year.
Fully diluted earnings per share for the latest quarter totaled 17 cents, compared to 16 cents in last year’s second quarter.
“We are pleased with our second quarter results overall,” said president and CEO Jon Thompson in a news release.
Thompson noted that the company’s gross profit margins for the quarter and the year are the highest in its history.
“That is the result of customer mix [retail vs. wholesale] and product mix [sales of leather vs. non-leather products],” Thompson said.
The company’s Retail Leathercraft division saw sales rise 9 percent, or $959,000, compared to last year’s second-quarter sales. The division comprised 80 stores as of June 30, 2014.
Meanwhile, second-quarter sales for the Wholesale Leathercraft dropped by 4 percent, or $271,000, compared to the same quarter last year.
The Wholesale Leathercraft division saw store sales drop 1 percent, or $177,000, in the first six months of the year compared to the same period last year.
International Leathercraft, comprising stores in the United Kingdom, Australia and Spain, added sales of $42,000 for the quarter, or 4 percent more compared to last year’s second quarter.
Consolidated gross profit margin rose from 62.8 percent in second-quarter 2013 to 64.9 percent in the same quarter this year.
For the year, expenses rose in employee compensation, advertising and marketing, depreciation and store rent and utilities. As a percentage of sales, the company saw consolidated operating margin for the quarter reach 13.5 percent compared to 12.4 percent in last year’s second quarter.
Tandy Leather Factory Inc. sells and distributes leather, leatherworking tools, do-it-yourself-kits and many other products. Its products are distributed through its 29 Leather Factory stores, located in 19 states and three Canadian provinces; 80 Tandy Leather retail stores, located in 36 states and six Canadian provinces; and three combination wholesale-retail stores in the United Kingdom, Australia and Spain.
More information is available at www.tandyleatherfactory.com.